The UK advertising market is expected to brush off Brexit-related tailwinds according to a summer forecast compiled by Magna headed ‘UK Ad Market Keeps Calm and Carries On’.
Among the reports, key findings are an anticipated slowdown in revenue growth from 6.7% in 2019 to 5.3% in 2020 in the world’s fourth-largest advertising market, with the UK remaining more dynamic than its Western European rivals in 2019 where growth is expected to be just 3.9%.
The British figures compare favourably with a global growth estimate of 5%, valuing the worldwide market at near $600bn, amid stronger than anticipated growth in the US and China. This represents a fall from the 8% global growth rate recorded in 2018 on the back of US elections and the Fifa World Cup.
Through 2019 UK digital ad sales are predicted to enjoy double-digit growth of 11% with linear ad sales falling back for the fourth straight year, retreating by -1.5%. TV meanwhile is expected to be flat while radio, print and OOH record growth of 2.5%, -10% and 4% respectively.
Vincent Létang, executive vice president of global market intelligence at Magna, said: “Global ad spend continues to grow as the economy remains strong in key markets but two factors are slowing down the growth rates in 2019: one is cyclical (the lack of major events in 2019, following a record year in 2018) while the other is structural: digital ad formats maturing (from 19% in 2018 to 14% this year) as they now account for more than half to total advertising sales.
Around the world ad spend growth is expected to come in at 3% in the US, 10% in China and Russia and 15% in India.